Engagement of YKB into the Solar Energy Market and Business

2017-12-31 - 2018-08-31
Yemen

Over the recent past, solar energy has become a major source for power in Yemen. YKB as a privately-owned commercial bank with large market shares in corporate business segments (including poultry production), has identified urgent market needs and related high business potential and intends now to engage into solar finance and close the market gap. In this context, YKB directly acquired advisory services from Germany to properly assess opportunities and threats of the market environment and verify whether the bank fulfills relevant prerequisites to launch the new business strategy. YKB chose to work with a consulting consortium to ensure all relevant fields of the assessment are covered. The consortium of four parties consists of a German advisory company specialized in solar power solutions, a German renewable energy expert who worked for many years in Yemen, a Yemeni market research company with substantial knowledge of the local market and LFS as the banking experts with a large set of expertise with strong track record in institutional development including developing and implementation of new financial products, structures and processes. The project is to be carried out in several phases. The first phase has been concluded in Q3 2018.
In co-operation with YKB and the other members of the consortium, LFS had responsibilities for the following deliverables: Preparing an in-depth SWOT Analysis of YKB, based on an institutional, financial, strategy and market assessment of our bank in Yemen. This SWOT analysis was the base for determining the right market entry strategy and customer and product segmentation for our business strategy. Develop detailed product descriptions and use cases for all of the targeted market segments and clients of YKB. Develop 3 year financial and portfolio projections per product and overall. Preparing cornerstones of the solar finance business strategy of YKB and our entrance into that market. Assist YKB in identifying potential co-operation possibilities with national, regional and international development finance institutions and stakeholders. Prepare work plan, budget and requirements for technical assistance for a full-scale implementation of a Solar Finance Programme for YKB